Risk managers involved in the live events sector, which is now booming post-pandemic, face a range of new risks and must factor in longer planning times, alongside developing risk assessments for new festivals according to Allianz Global Corporate & Specialty (AGCS).
AGCS global head of entertainment Michael Furtschegger said there is currently ‘huge demand’ for live events, with larger promoters dealing with record numbers of fans. He said this is cause for optimism but a new risk landscape is posing challenges for event organisers.
Like many other industries the entertainment sector is also facing staff shortages. According to a survey by the Professional Light And Sound Organisation, nearly 70% of companies reported a shortage of skilled workers – such as engineers, technicians and those involved in stage technology – at the end of last year.
Mr Furtschegger said, “Staff shortages can become a particularly acute problem when it comes to safety personnel. In some cases, it can mean that authorities won’t allow an event to take place. In terms of other safety-critical tasks, organisers need to make sure they properly vet vendors and contractors to ensure the event is run professionally.”
He said, “As more performances take place and productions run in parallel, the demand for touring equipment increases, often rented from rental companies with limited resources. Ideally, this requires thorough planning for equipment purchases.”
AGCS said many new festivals that are currently emerging, require a new risk assessment. Also, resource constraints could cause problems for the live events industry.
Organisers of established festivals like Coachella in the US, Tomorrowland in Belgium or Rock am Ring in Germany will be relatively familiar with the risks of their venues. New and untested venues, however, require a different risk assessment.
Mr Furtschegger said, “I am confident that the live entertainment events sector will continue to flourish as it has this summer. I believe their ingenuity, creativity and energy will lead them into a bright future.” A